Any person who can invest the required amount into the U.S. economy, can document that the capital was legally earned, and satisfies general eligibility requirements (e.g., medical, criminal) typically is qualified to apply. The investor’s spouse and any minor children (under 21) also qualify.
Project Elements that are Attractive to Investors: Brokers and agents will take your project and work to sell investors on the initiative. Investors will look for a number of things when reviewing the economic analysis and business plan.
* Minimum investment – Remember that a project going through a RC and being located in a TEA (Targeted Employment Area) reduces the minimum investment from $1,000,000 to $500,000.
* Investor to job ratio – At least ten (10) new jobs must be created for each investor. The “preliminary analysis” will tell you how many jobs your project will generate based on an industry formula. For example, a hotel will generate more jobs than a housing complex. Possible elements factored into the hotel are general hotel staff, restaurant staff, etc. Also indirect jobs count if the project goes through a regional center.
* Risk – Under the law, the Regional Center cannot guarantee profit or the return of the principal investment by the investor. However, there are project elements that help reduce risk and make the project more attractive. E.G. Project associated with a government funded institution or a popular franchise.
* Exit strategy – It is customary that the exit strategy for the investor be between 5-7 years. This is based on timing for the investor getting their permanent green card. At the end of the investment period the developer has either paid back the investor or is prepared to refinance the agreement, whereby releasing the investor.
Investor refunded if application denied by the U.S. Citizenship and Immigration Services? Yes – The SAC Regional Center will create an escrow account in which investments are frozen until the I-526 application is approved by the USCIS. In the event that the application is denied, the investment will be returned in full minus administrative expenses.
SAC industry partners do an excellent job of vetting investors prior to USCIS review and to-date has had zero investor rejections. Industry standard is 1 out of 10. SAC will also provide escrow account information to the investor at the appropriate time. This account serves to keep the investor’s money protected and separate until such time as the I-526 Conditional Visa application is approved.
It is customary that once funds are deposited into the escrow account, developers take out a short-term loan against a majority of the escrow funds to start development earlier. Once the I-526 Conditional Visa is approved, the escrow funds are released and the short-term loan paid off.
Part 4. How to work with SAA Cedisus EB-5 Projects